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Law For the AgesTue, 14 Aug 2018 14:27:24 +0000enhourly1https://wordpress.org/?v=4.9.8Different Types of Bankruptcies: Chapter 7, 13, 11, 12 and 9https://www.gallerlaw.com/different-types-bankruptcies-chapter-7-13-11-12-9/
https://www.gallerlaw.com/different-types-bankruptcies-chapter-7-13-11-12-9/#respondSat, 21 Jul 2018 07:47:08 +0000https://www.gallerlaw.com/?p=3242If you have taken a loan individually or on behalf of your business and are unable to pay back the same and face either personal bankruptcy or bankruptcy for business, you may have to take the help of the courts. In the US, federal laws govern the rules and procedures for filing bankruptcy. There are […]

]]>If you have taken a loan individually or on behalf of your business and are unable to pay back the same and face either personal bankruptcy or bankruptcy for business, you may have to take the help of the courts. In the US, federal laws govern the rules and procedures for filing bankruptcy. There are different types of bankruptcies and you need to file all bankruptcy-related claims with the US Bankruptcy Court.

The US federal government has made legal provisions that allow you to have your debts discharged by the courts. Bankruptcy courts have the power to excuse you from repaying some or all of your debt.

Bankruptcy filing is broadly classified into five – Chapter 7, 9, 11, 12, and 13 bankruptcies. Of these filing Chapter 7 or 13 are most common. So, which is better Chapter 7 or Chapter 13? Let’s find out.

Chapter 7 and Chapter 13 bankruptcies

The most common types of bankruptcies are Chapter 7 bankruptcy and Chapter 13 bankruptcy. If your business is under debt, you need to initiate Chapter 11 business organization and rehabilitation petitions.

Filing for Chapter 7 bankruptcy or liquidation bankruptcy brings into force ‘automatic stay’ that immediately stops most creditors from collecting payments from you. However, you have to turn over all your ‘non-exempt’ property to a supervising officer known as the bankruptcy trustee.

The state or federal law determines which property is exempt.

The federal exemptions include:

Equity in your home: $16,500.● Equity in your car: $2,575.● $425 per item in any household goods up to $8,625.● $1,625 in job-related books, tools, etc.● $850 in any property and part of the unused exemption in your home totaling up to $8,075.

If a married couple files bankruptcy together, the exemption amount will be doubled. The exempted property generally includes specific assets, such as essential clothing, household items, work tools, and in some instances, vehicles and home.

The trustee officer will take your non-exempt property, if you have one, and sell it. Office will then distribute the proceeds of the sale among your creditors. Although by doing so, the creditors may only receive a fraction of their claims, the balance loans, and obligations get exempted permanently, never to be paid. This way, you stand to benefit from this. If, your creditors still try to collect their debts after discharge, they can face severe penalties.

Chapter 13 bankruptcy (reorganization bankruptcy) comes to your rescue if you have non-exempt property but don’t want to give it up. This allows you to keep your property. For this, you need to be in a position to make monthly payments to your creditors towards your debt. However, you need to repay the debts within a course of three to five years.

There are several benefits of Chapter 13 bankruptcy. Not only do you get to keep your property, but you are able to restructure your secured debts, such as a car loan. Restructuring a car loan involves reducing the principal to the market value of the collateral and lowering payments by extending the repayment period to 60 months. Chapter 13 bankruptcy also allows modifying mortgages, student loans, and tax liabilities. In this, your creditors don’t have any say at all.

Is bankruptcy available to all?

Unfortunately, no. If you have had a debt discharged within the past eight years under Chapter 7, you are not permitted to re-file. In the case of Chapter 13, the waiting period extends for six years. At times, some debtors may have the means to pay the creditors, since they have a good amount of disposable income, but still go in for bankruptcy.

To prevent this, a ‘means test’ has been put in place that gauges the repayment capacity of the debtor by comparing it with the average earning of the population of the state. If the debtors are found to be making enough money to repay their creditors, they are debarred from filing a liquidation bankruptcy. However, reorganization still remains an option for them.

How much debt should be there to file for bankruptcy?

There are no set rules for this, but some experts suggest that you should only file for bankruptcy if you have at least $15,000 to $20,000 in debt. You can file for less debt, but it has got two drawbacks. First, it may be difficult to persuade the court that a discharge on the small amount is warranted. Secondly, the damage caused to your credit rating may outweigh the benefit of discharging a smaller debt load.

Should I file for Chapter 7 or Chapter 13?

Wonder which is the right option for your situation? Read on to analyze some key scenarios:

Mortgages and car loans: If you are planning to file a Chapter 7, most likely you will have to return your car or house to the creditor or pay its wholesale value. The problem arises in an upside-down mortgage, where you owe more than your house is worth, where you may stand to lose. In Chapter 13, you may be allowed to keep your car or house.

Debts owned due to past crimes: You will not be able to get a discharge on your debt in Chapter 7 if your creditor objects and is able to prove your prior court conviction. In Chapter 13, you need to pay your creditors as per plan, but if you fail to pay your outstanding debts in full by the end of Chapter 13 bankruptcy, the balance stands to be wiped out.

Debts owed for child support, alimony, student loans: You cannot avoid paying the debt owed for child support, alimony and student loans through Chapter 7 bankruptcy. The court will not discharge these debts. In Chapter 13, in case you fail to pay off these debts, you will need to continue doing so, even after bankruptcy is over.

Non-support debts owed in a divorce, property settlement or agreement: A Chapter 7 filing may not discharge the debt, if your creditor, such as spouse, objects. However, you can get a discharge if you show the court that you will not be able to pay these debts after bankruptcy and if the benefit of a discharge overcomes the adverse situation created for the creditor. In Chapter 13, the remaining balance, if any, will be erased at the end of bankruptcy.

Filing for bankruptcy

Filing under Chapter 7 or 13 entails complying with numerous federal laws and regulations. You need to file bankruptcy with utmost care, for a mistake at any step of the process may result in the court’s refusal to discharge your liabilities. Of course, this will have disastrous consequences for you.

The only sensible way out is to hire a competent licensed bankruptcy lawyer, who is well versed in bankruptcy federal laws and regulations. He or she will be the one who will help you submit a petition and deposit fees in the bankruptcy court.

The lawyer will also ensure that the petition contains your sworn statement about the amount of money you owe to the creditors, your income and expenses and a complete list of your assets. This information in the petition is reviewed through a court hearing after the bankruptcy is filed.

Will filing bankruptcy end financial problems?

Unfortunately, no. It cannot end every financial problem. For one, it usually doesn’t eliminate debts owed to ‘secured’ creditors. However, it may allow debt restructuring.

Bankruptcy will also not discharge the following debts:

Debts incurred within 180 days of filing bankruptcy.● Child support.● Alimony.● Court fines and penalties.● Taxes that have accrued over the past three years.● Debts not included in your bankruptcy petition.● Loans obtained through fraud.● Student loans that became due, less than seven years before bankruptcy was filed.● Debts arising after bankruptcy has been filed.

Difference between Chapter 7 and Chapter 13 bankruptcies

Filing for bankruptcy (Chapter 7 bankruptcy or Chapter 13 bankruptcy) is based on the income level. Chapter 7 generally pertains to those who fall below a certain income level.

Another significant difference between the two bankruptcies are Chapter 7 is simpler to file and takes less time, whereas Chapter 13 takes more time. For example, of all the bankruptcy cases filed, Chapter 7 bankruptcies constitute almost 71 percent, while the remaining 29 percent are Chapter 13 bankruptcies.

Chapter 7 vs. Chapter 13 bankruptcy

To qualify for Chapter 7, the debtor’s disposable income must be low enough to pass the ‘means test’. However, in Chapter 13, the debtor cannot have an unsecured debt of more than $394,725 or secured debt of $1,184,200.

In Chapter 7, it usually takes three to four months to receive a discharge, whereas, in Chapter 13 bankruptcy, you can obtain the discharge upon completion of all plan payments. This usually takes three to five years.

In Chapter 7 bankruptcy, the court-appointed trustee can sell all non-exempt property and distribute the proceeds among the creditors. However, in Chapter 13 bankruptcy, the debtor can keep the property, but has to pay unsecured creditors an amount equal to the value of non-exempt assets.

Chapter 7 bankruptcy allows reducing the principal loan balance on secured debts, but only on tangible personal property. Chapter 13 bankruptcy does so without any rider, except that all requirements are met.

Both Chapter 7 and Chapter 13 have their own benefits. Chapter 7 bankruptcy allows debtors to quickly discharge qualifying debts and get a fresh start. Whereas, Chapter 13 allows debtors to keep their property and catch up on non-dischargeable priority debt payments and missed mortgage and car debt payments.

Drawbacks:

Both bankruptcies have some drawbacks too. Although Chapter 7 bankruptcy allows the trustee to sell the non-exempt property, it has no provisions for debtors to catch up on missed payments that may result in foreclosure or repossession. In Chapter 13 bankruptcy the debtor has to make monthly payments to the trustee for three to five years. The debtor may have to pay back a portion of general unsecured debts.

What are the other different types of bankruptcies?

As previously mentioned, there are three more different types of bankruptcies in addition to Chapter 7 and Chapter 13. They are Chapter 11, 12 and 9.

Chapter 11 bankruptcyWhen a commercial enterprise faces bankruptcy, the debtor takes recourse to Chapter 11 bankruptcy. This enables the debtor to continue business operations while agreeing to repay creditors through a court-approved reorganization plan. For this, the debtor gets 120 days, after the order for relief, to file a plan of reorganization.

The debtor needs to give a disclosure statement to creditors that allow them to evaluate the plan. However, the final approval of the plan rests with the court. Chapter 11 provides a number of options to the debtor for returning the business to profitability. These include:

○ Repaying a portion of debts to reduce them, while discharging others.○ Discharging contracts and leases that are proving a burden on the debtor.○ Choosing to rescale operations of the business.

The reorganization plan ultimately leads the debtor to consolidate his or her business and end up with a reduced debt load. This also helps the debtor to reorganize the business and make it more profitable.

Chapter 12 bankruptcyA Chapter 12 bankruptcy is basically meant for family farmers with regular annual income. It allows the debtor to offer a debt repayment plan over a period of three to five years.

For this, the bankruptcy court appoints a trustee to supervise the bankruptcy process and payment to the creditors. Chapter 12 bankruptcy allows the debtor to continue to operate the farm while carrying out the plan.

Chapter 9 bankruptcyA Chapter 9 bankruptcy is for a municipality that includes villages, towns, cities, counties, school districts, taxing districts and municipal utilities. If they file for bankruptcy, they have to do so under Chapter 9. In this, the municipality proposes a repayment plan for reorganizing, which is similar to Chapter 11 bankruptcy.

Conclusion

Highlighting the difference between Chapter 7 and Chapter 13 bankruptcies will help you in knowing what type of bankruptcy is right for you. Although your lawyer will guide you in this, still it is better to be aware of what bankruptcy is all about and what are the different types of bankruptcies.

]]>https://www.gallerlaw.com/different-types-bankruptcies-chapter-7-13-11-12-9/feed/0Chapter 20 bankruptcy : What is it and how to filehttps://www.gallerlaw.com/chapter-20-bankruptcy-file/
https://www.gallerlaw.com/chapter-20-bankruptcy-file/#respondWed, 18 Jul 2018 06:34:54 +0000https://www.gallerlaw.com/?p=3230You have come across the term “filing for bankruptcy at 20” many times especially in items dealing with debt. Amusingly, there is no chapter 20 in bankruptcy laws. The process of filing in chapter 7 followed by chapter 13 is collectively known as chapter 20 bankruptcy. What is not possible by chapter 7? Chapter 7 […]

]]>You have come across the term “filing for bankruptcy at 20” many times especially in items dealing with debt. Amusingly, there is no chapter 20 in bankruptcy laws. The process of filing in chapter 7 followed by chapter 13 is collectively known as chapter 20 bankruptcy.

What is not possible by chapter 7?

Chapter 7 is a great bankruptcy law by which you can avoid harassment by creditors, stop debt proceedings against you immediately and let you keep some of your assets. It mainly helps in clearing the unsecured debts. Unsecured debts can be credit card dues, overdue utility payments or personal loans.

However,some debts are not easy to be brushed off by chapter 7 filing. Most prominent of non-recoverable debts by chapter 7 are older tax debts, student loans and alimony.

It is not that you cannot entirely rub off a student loan by filing in chapter 7. In case you want to square off your student loan under this scheme, you will have to prove the heavy undue hardships you will undergo in settling this debt.

However, no such offers are available for taxes due in chapter 7. You will have to pay your taxes after discharge or else face the music.

Chapter 7 is fashioned to clear the unsecured loans.

Child support dues are not whitewashed clean by Chapter 7; these unpaid dues continue to remain as a blot on your credit-worthiness unless you pay them .

Filing a chapter 7-bankruptcy appeal will not allow overcoming the missed premiums in mortgages or car buying payments category. Failing to pay these may lead to a takeover of the mortgage or the car.

What chapter 13 cannot do?

Unlike chapter 7, chapter 13 debts are classified mainly into secured and unsecured claims. Here the stress lies in paying the secured claims first. Some debts, which cannot be paid off through chapter 7, are classified as priority debts in Chapter 13. These are not discharged but are supposed to be paid back within 3-5 years. An example is the unpaid previous taxes, child support, and alimony payments.

You become ineligible for chapter 13 bankruptcy safety net under the following conditions:

(a) your debts exceed 1,184,200 $ in secured defaults or

(b) $ 3,94,725 in unsecured ones.

In addition, chapter 13 payment sharing between unsecured loans and student loans on a proportionate basis means more student loan left to be paid back once the chapter 13 payment protection ends.

You should have a decent disposable income after meeting your routine expenses to be eligible for chapter 13 scheme.

The advantage of filing a chapter 20 bankruptcy:

If there is nothing as chapter 20 in the bankruptcy law then what is chapter 20 bankruptcy?

This is the name of a strategy used to cut down both types of debt, unsecured and secured, most optimally. This strategy works best for pruning all almost types of defaults or loan dues by using chapter 7, followed by chapter 13.

The most obvious advantage is cutting down the loan amount via chapter 7 to make it suitable for chapter 13. However, 13Thchapter is not applicable if the debt is above a certain value in both secured and unsecured category.

Do you want to learn how to solve this 13Th chapter problem?

Discharge your unsecured debts via chapter 7. Check out your exempt assets and non-exempt assets for purpose of selling off. Also, check the type of debt you have and how much of it allowed to be paid off in 7 via your nonexempt assets.

Allow hiving of nonexempt assets to pare the total loans to bring it within the limit prescribed by 13Th chapter eligibility.

Once it is down to the prescribed levels, try filing under chapter 13 to pay back dues in missed mortgage, car buying premiums, taxes due, child support .etc. As you know by now, these cannot be set off in chapter 7.

It is better to pay the student loan altogether in chapter 13. Normally, student’s loans are much bigger than unsecured loans. If paid through chapter 7, a major portion of the assets will be spent on paying off the student loan leaving keeping most of the unsecured ones still open. Rather, downsize other unsecured debts via chapter 7 first, then try to pay the students loan in the given timeframe peacefully via chapter 13.

Another use of a Chapter 20 bankruptcy strategy is when you think yourself as capable of paying off a large due but will need considerable time for that repayment.

Chapter 20 bankruptcy filing is actually a strategy where both the chapter 7 and chapter 13 are used, one after another, respectively. While chapter 7 brings down the total loan amount comprising the secured and unsecured loans to a permissible limit, chapter 13 is then used to repay the larger secured borrowings within a larger period.

You can use the larger period available to the chapter 13 filers to settle large debts like mortgage. Some loans like unsettled tax dues, cannot be brushed under carpet through chapter 7. This is the point where chapter 13 steps in. By filing bankruptcy request, the ineligible dues under chapter 7, can be settled rather comfortably within 3 to 5 years via chapter 13.

In case of a home mortgage, you can first reduce the non-mortgage dues via chapter 7. Then, you can aim to catch up on the past mortgage premium payments (according to the Chapter 13 payment terms) through chapter 13. Without this ample period available for mortgage homebuyers to catch up, many home would have faced foreclosures.

Chapter 20 May Help You Qualify for Chapter 13 Bankruptcy

To be eligible for chapter 13, you have to meet basic two criterions. Your unsecured debt should be below 3,60,475$. In case of secured dues, it should be below 1.081.400 $. Larger than that, file under other more cumbersome chapters like 11.

Also, you need to prove yourself solvent enough to pay for some amount of debt every month.

To meet the first criterion, hive off your unsecured due amounts by selling off the non-exempt amounts under chapter 7. The reduced debt would spare you with a roof on the head while your overall debt comes down. This would not only bring down to debt to the permissible limit for section 13 but would also leave you enough of free money per month to pay the dues now decided by the chapter 13 trustee. In absence of chapter 7, paying the interest plus part of the principal amount left you exhausted and with little of the free money to pay the dues of secured debt.

Chapter 20 Bankruptcy allows you to focus on Priority and Secured Debts

As the name suggests, priority debts are meant to be settled on a priority basis. Else, they may land you in considerable legal hassles. However, Chapter 7 is designed so that unsecured loans are easily and efficiently settled while leaving something for the debtor. It is not designed to settle the priority debts e.g. the tax due, child support.

It is better to get rid of the unsecured loans at a discounted rate through chapter 7, become free. You can then focus on settling the priority and secured debts within the spacious settlement time of 4-5 years.

Listen: It is not that unsecured loans can be paid only through chapter 7 filing. The same can be done through chapter 13. However, in that case, instead of the loan being absolved, you will have to repay it (at least partly) within a given time. The given time is long enough. However, instead of paying the unsecured dues via this route, it is more profitable to pay the priority and secured dues via this opportunity.

Thus, you are given the opportunity of choosing unsecured loans first followed by a full effort to payback the secured ones after that. In short, you can selectively focus on secured or unsecured debts.

Steps to file under Chapter 20 bankruptcy

Here are the requirements for filing a chapter 20:

• You should have no prior discharge under chapter 7 scheme in the preceding 8 years.• You should not have applied for and received relief under scheme 13 in the preceding 6 years before the current appeal.

Normally people first file discharge appeal under chapter 7. Once they obtain that, they now move for payment of those dues, which were not be covered by chapter 7. For this, they file an appeal under chapter 13 route.

However, to be illegible for chapter 7, one has to pass a series of means test. In case you pass that test, you can file an appeal under chapter 7. After discharge, for filing request under chapter 13, you will have to again undergo a solvency test.

To be illegible for chapter 13, you must have a per month free income after-meeting-own–expenses, to partially pay off the debt. The chapter 13 trustee will decide the amount that is to be paid per month for hiving off the debt under this relief scheme.

Procedure

A person first files the bankruptcy request under chapter 7. For this, he has to list his unsecured debts, exempt and non-exempt assets transparently. Once he is lucky enough to get his discharge certificate, he will go for settling the rest dues under chapter 13. Here, he will appeal to clear mainly the unpaid secured loans and those, which remained unpaid under chapter 7.

What are the limitations of chapter 20?

Chapter 7 is one of the easiest and fastest routes to get rid of unsecured dues, no doubt about it.

Warning:

If you get a chapter 7 discharge, you become ineligible to get a discharge in chapter 13 within the following four years.

Get this:

Chapter 13 is mainly aimed at buying time for paying your larger secured dues or catching up with the unpaid premiums in the mortgage or car buying category, so this no-discharge law of four years is followed.

However, get this fact:

Under chapter 20, you can’t keep your business, non-exempt items or equity from being dissolved to pay your creditors. They have to go, so pay back your dues in time.

Lien stripping is not sure:

Lien stripping is the preferred method when your mortgage number more than one property but your debt is larger than the properties combined. Under lien stripping, there is a chance of saving the second mortgaged property, even if the loan amount due exceeds the value of the first mortgaged asset. However, be warned: Lien stripping is not available under chapter 7.

Look, bankruptcy courts follow their own minds when it comes to Lien Stripping under chapter 13. It may or may not be available in this part too. It all depends on the court.

Want to know a secret!

In case you want to avail the facility of Lien Stripping, consult with the bankruptcy lawyer first. Be well prepared before you start filing the requests under chapter 7. Once the process starts and chapter 13 follows after chap 7 discharge, you will not be able to turn back the process before several years.

Bad Faith Objections:

Never try to pay unsecured debts via chapter 13. By now, you will have realized that chapter 13 is meant for large secured loans and mortgage premiums, tax dues that have remained unpaid and can land you in big legal trouble.The aim is to repay those dues as much as possible in an ample breathing time of 3-5 years. In case you try to slyly pay off unsecured claims via chapter 13 and the trustee gets a whiff of it, they may raise objection stating it as a bad faith measure. You are seen as using the system loophole to settle your unsecured dues. So, play by the rules. Get yourself free from the accumulated mountain of debt.

Keep in mind:

You will not get the same chance for the next five years once the process gets going and you are absolved once.

]]>https://www.gallerlaw.com/chapter-20-bankruptcy-file/feed/0How to Qualify for a Roswell Loan Modificationhttps://www.gallerlaw.com/qualify-roswell-loan-modification/
https://www.gallerlaw.com/qualify-roswell-loan-modification/#respondThu, 05 Jul 2018 21:13:58 +0000https://www.gallerlaw.com/?p=3201http://Qualify for a Roswell Loan Modification Financial hardships like medical bills and job loss can create difficulties for many homeowners who still owe on their mortgage. This is why many borrowers turn to a home loan modification. This kind of modification allows the borrower to restructure their mortgage payments to make them more affordable, and […]

Financial hardships like medical bills and job loss can create difficulties for many homeowners who still owe on their mortgage. This is why many borrowers turn to a home loan modification. This kind of modification allows the borrower to restructure their mortgage payments to make them more affordable, and avoid foreclosure. In order to qualify for a Roswell loan modification, it is important that you meet the following 3 criteria.

Financial Necessity: In order to obtain a Roswell loan modification, you must show true financial need. Job loss, death of a spouse, or outstanding medical bills qualify as financial need. Buying a new car and accruing credit card debt, do not.

Capacity to Pay: Even though you have shown financial need, you will still have to show your lender that you will be able to make the payments, at either a reduced amount or lower interest rate. If you have lost your job, for example, you would need to show your lender how you are looking for a new job.

Complete Application: This step is especially important in order to get an approval for your loan modification. A complete application will include an application form from your mortgage lender and a hardship letter. The hardship letter should detail the personal circumstances that have led to your request for a loan modification. Use this letter to explain your personal situation, and remember to be honest, do not falsify any information.

]]>https://www.gallerlaw.com/qualify-roswell-loan-modification/feed/0Do You Have Student Loan Debt? You Have Options!https://www.gallerlaw.com/do-you-have-student-loan-debt-you-have-options/
https://www.gallerlaw.com/do-you-have-student-loan-debt-you-have-options/#respondWed, 04 Jul 2018 21:07:22 +0000https://www.gallerlaw.com/?p=3199STUDENT LOAN DEBT . These days, Americans owe over a billion dollars on their student loans, and these debts are now bigger than our credit card, mortgage, and auto loan debt combined! If you are one of the over 40 million people that is struggling under the weight of their Student Loan Debt, it can be […]

]]>STUDENT LOAN DEBT . These days, Americans owe over a billion dollars on their student loans, and these debts are now bigger than our credit card, mortgage, and auto loan debt combined! If you are one of the over 40 million people that is struggling under the weight of their Student Loan Debt, it can be hard to know where to turn for help. Thankfully, you have more options than you may realize, in order to help you manage these financial obligations and save you money on interest over time. With the help of a qualified student loan attorney, you can get back on your feet again, and pave a sustainable path towards financial security.

Here are a few ways that a good attorney can help you manage your student loans:

1. Get loans out of default

If you are struggling financially and have fallen behind on your student loan payments, you may be put into default. To default on your student loans can be a serious issue, especially when it comes to your credit standing, but it can be challenging to know how to get out of default quickly and safely. With legal assistance, you can negotiate a plan to remove this delinquent status, and get back on track.

2. Lower your monthly payment

For many people on a tight budget, paying hundreds of dollars a month on student loans just isn’t feasible, but a lawyer can help you lower these payments to a more reasonable amount. By negotiating lower interest rates and/or an extended payment plan, you can save money over time and have a little more breathing room every month.

3. Settle your loan balance

Individuals in student loan debt often don’t realize that loan lenders may offer options for settlements, but these typically need to be handled by a qualified attorney. You may be able to settle your entire loan balance for a lower amount, and put your debts behind you faster than you had planned.

Dealing with the financial burden of educational loans can seriously restrict your ability to move upwards in the world and be a successful member of society. But thanks to student loan debt lawyers in Georgia, and across the country, people just like you are finally able to breathe a sigh of relief, knowing these debts can be managed and settled in more beneficial ways. If you need help with your Federal or private student loans, get in touch with us at Galler Law today and ask for your free student loan debt consultation.

]]>https://www.gallerlaw.com/do-you-have-student-loan-debt-you-have-options/feed/0When do you need a loan modification lawyer?https://www.gallerlaw.com/when-do-you-need-a-loan-modification-lawyer/
https://www.gallerlaw.com/when-do-you-need-a-loan-modification-lawyer/#respondTue, 03 Jul 2018 20:57:22 +0000https://www.gallerlaw.com/?p=3196When do you need a loan modification lawyer? Do you need a loan modification lawyer? The most common case we see is someone facing foreclosure. They have huge back payments that can not catch up on, or simply need a lower payment. There are many different organizations that offer help with Loan Modifications. A loan modification Lawyer […]

Do you need a loan modification lawyer? The most common case we see is someone facing foreclosure. They have huge back payments that can not catch up on, or simply need a lower payment.

There are many different organizations that offer help with Loan Modifications. A loan modification Lawyer provides you with the best options. Non attorneys are not trained in law and are not regulated in the same way as licenses attorneys. At Galler Law we have helped people with debt problems for over thirty years. In fact, many other attorneys refer their clients in need of a loan modification to our firm.

What is a Loan Modification?

In short a loan modification is a permanent restructuring of the mortgage. This is where one or more of the terms of a borrower’s loan are changed to provide a more affordable payment. With a loan modification, the lender may agree to reduce the interest rate.

Why Choose a Loan Modification instead of Chapter 13 to stop a foreclosure?

While a Chapter 13 bankruptcy is the only way to guarantee a legal Foreclosure will be stopped, a loan modification has many advantages!

]]>https://www.gallerlaw.com/when-do-you-need-a-loan-modification-lawyer/feed/0How often can you file for bankruptcy – the ultimate Guidehttps://www.gallerlaw.com/how-often-file-bankruptcy/
https://www.gallerlaw.com/how-often-file-bankruptcy/#respondSat, 09 Jun 2018 17:38:56 +0000https://www.gallerlaw.com/?p=3098How Often Can You File Chapter Bankruptcy? Probably once bitten twice shy is not for some. The reason you find them filing Chapter 7 bankruptcy, getting a discharge, and, lo and behold, again getting into financial difficulties and ready to start all over again! In the case of Chapter 13 too, people falter in payments […]

Probably once bitten twice shy is not for some. The reason you find them filing Chapter 7 bankruptcy, getting a discharge, and, lo and behold, again getting into financial difficulties and ready to start all over again! In the case of Chapter 13 too, people falter in payments after a year or two, get their case dismissed and are ready to file again.

There may be genuine reasons in both the cases, for no one takes pride in declaring bankruptcy. But, debtor’s do misuse these provisions.

Filing for bankruptcy once again

If you are in a situation that you have to file for bankruptcy again, you have got a problem on your hands. The federal bankruptcy law has set limits as to how often you can file for bankruptcy.

And if you think by doing so, you can get an automatic stay, where you can prevent your creditors from, say, repossessing your car or foreclosing your house or continuing lawsuits, etc., you may be disappointed. This is because, even though you are allowed to file bankruptcy again, the federal law restricts or delays automatic stay.

Eligibility for filing bankruptcy again

Can you file bankruptcy twice? There are no restrictions on how many times you can file bankruptcy, unless the bankruptcy court has some reservations about it and prohibits you from doing so. Did the court discharge your debts in the initial bankruptcy case? Then, you need to wait for some time before you can file bankruptcy again and get a discharge.

● When did you file your previous bankruptcy case?● What type of bankruptcy did you previously file and which one are you wanting to file now. ● What was the outcome of your previous bankruptcy – was it discharged, dismissed or dismissed with prejudice.

You are free to file the bankruptcy again (with some restrictions), if the bankruptcy court dismissed your previous case without a discharge.

However, you will have to wait if the bankruptcy court discharged your case as follows:

How often can you file for bankruptcy chapter 7 and chapter 13

● If you had filed Chapter 7 bankruptcy previously and want to file another Chapter 7 bankruptcy, the wait is of eight years from the date of filing initial bankruptcy.

● If you want to file fresh Chapter 13 bankruptcy, after getting a discharge in a previous Chapter 13 bankruptcy, the wait is two years after filing the earlier case. This doesn’t pose much of a problem, since discharge in Chapter 13 case, as it is, takes three to five years, so immediate filing is possible after receiving a discharge in Chapter 13 case.

● How soon can you file Chapter 13 after Chapter 7? In case, you had filed Chapter 7 bankruptcy and got a discharge and now you want to file Chapter 13 bankruptcy, you will need to wait it out for four years after filing the earlier case.

● For filing Chapter 7 bankruptcy, if you had previously filed Chapter 13 bankruptcy, the wait is six years from the time of first filing.

Note

Under the following conditions, court can reduce the waiting period:

You had paid at least 70 percent of unsecured claims

Proposed the Chapter 13 payment plan in good faith

Made your best efforts to make it work

Court dismissed your Chapter 13 case the first time

Now here’s a case that needs some explaining. You filed Chapter 13. However, due to certain circumstances you were unable to complete your payments and the case is dismissed. So, can you file bankruptcy case again? Yes, you can, provided you did not get a discharge and your case was dismissed.

So, how soon after a dismissed Chapter 13 can you file again? If this happens, you can file a fresh Chapter 13 case right away. There is a possibility of debtors resorting to filing several cases in quick succession, only to get them dismissed. Although this is not a good idea, it is possible.

The reason a debtor would file several cases in quick succession is when he faces a threat to his property and wants to prevent foreclosure or its repossession by creditors. Once this threat is over, the debtor seeks dismissal of the case by approaching the court.

Alternatively, he or she may simply stop paying the plan payments leading to its dismissal by the court. When the creditor renews its collection efforts, the debtor preempts it by filing a new case.

The bankruptcy laws have catered to this scenario where a debtor tries to hoodwink the bankruptcy court. This is why the Bankruptcy Code has provisions where, even though, it allows the debtor to file a new case, it limits automatic stay. This helps to prevent the debtor from misusing the bankruptcy laws.

Cases pending within 12 months

● One case pending: Did you know you can get some preference in filing the second case if you had one previous bankruptcy case pending in the last 12 months that was dismissed. In such cases, you can file a bankruptcy case a second time. However, the automatic stay will only be for the first 30 days of the second case. In those 30 days, creditors cannot undertake collection actions, including repossession, foreclosure, etc. After this period the stay will lift automatically. You need to approach the court to extend the automatic stay.

● Two cases pending: In case you have two cases pending within the last 12 months, the court allows you to file a third case, but it will be without any automatic stay. If you want this, you need to approach the court separately. In such a situation, creditors will be at liberty to undertake repossessions, foreclosures, lawsuits, garnishments, or contact you in any manner and form they deem fit.

Courts criteria for extending stay

In the above cases, you can ask the court to extend the stay. The court will base its decision on the following factors:

● The number of cases filed by you.● Non-payment, error, filing incomplete paperwork, or not cooperating with the trustee was the reason for dismissal of your case.● Your creditor filed for relief from automatic stay in order to repossess your car or foreclose your property.● Your changed circumstances since the dismissal of your case.

Reasons for denial of the bankruptcy discharge

● You can get into big trouble if you attempt to defraud by concealing, transferring or moving property. Always take your bankruptcy attorney into confidence, before taking any of these actions.

● Concealing or destroying information will go against you. And this includes not properly maintaining your financial documents that show your financial situation. So, it is advisable to keep all your financial records safe and organized for easy scrutiny.

● If you think you can lie in court, think again. Lying under penalty of perjury is bound to get you into the soup that can also result in a jail term.

● You also cannot hide your assets and term them as lost. This is because the court, your trustee and your creditors will be all out to catch your lie of lost or deficient assets.

● You will certainly be asking for it if you refuse to comply with a court order. If you do, the court will certainly show you who’s the boss.

● Those who are filing bankruptcy case need to take two instructional courses in finances – credit counseling and financial management. Your discharge can be denied just because you failed to take these instructional courses.

Do you really want your bankruptcy case taken up by the court? Then, it is best not to commit any of these offenses.

Why should you go in for filing Chapter 13 bankruptcy?

The following are the advantages of filing Chapter 13 bankruptcy, even if you are not eligible to achieve a discharge of debts:

● In Chapter 13 filing, the automatic stay remains regardless of your ability to discharge debts. For instance, if you have been directed by, say, IRS to pay all your tax debts within 24 months, you can stretch this time period to over 60 months, simply by filing a Chapter 13 case, and that too at zero percent interest!

● Although 100 percent student loans need not be paid during the 60-month Chapter 13 by filing multiple back-to-back Chapter 13 cases, you can continue to protect student loan payments.

● You can go in for a Chapter 13 case to remove a junior lien against your home, even though you have received Chapter 7 discharge. In this case, you will not be getting a Chapter 13 discharge. The bankruptcy professionals term it as doing a ‘Chapter 20’ case.

Professional bankruptcy attorneys a must

A qualified and experienced bankruptcy attorney is a must for tackling all situations arising in a bankruptcy case. In Georgia, Galler Law, a bankruptcy law firm, boasts of unmatched success in helping thousands of residents of Atlanta in obtaining debt relief through the bankruptcy system.

Conclusion

Filing for bankruptcy is a complex process. Even more complex if you have previously filed a bankruptcy case and want to file another one. To this end, Galler Law attorneys have an enviable reputation for getting bankruptcy discharges for their clients.

]]>https://www.gallerlaw.com/how-often-file-bankruptcy/feed/0Georgia’s garnishment law unconstitutionalhttps://www.gallerlaw.com/georgias-garnishment-law-unconstitutional/
https://www.gallerlaw.com/georgias-garnishment-law-unconstitutional/#respondTue, 08 May 2018 13:16:50 +0000https://www.gallerlaw.com/?p=714BANKRUPTCY CHAPTER 13 CHAPTER 7 A federal judge has halted garnishments in Gwinnett County, ruling that the state law that governs the process is unconstitutional. The law is flawed because it doesn’t require creditors to tell debtors that some money — like Social Security benefits, welfare payments and workers’ compensation — is off limits to […]

A federal judge has halted garnishments in Gwinnett County, ruling that the state law that governs the process is unconstitutional.

The law is flawed because it doesn’t require creditors to tell debtors that some money — like Social Security benefits, welfare payments and workers’ compensation — is off limits to garnishments. When that money is wrongly taken, the law doesn’t require creditors to tell people how to get it back, and it doesn’t provide a timely procedure for determining whether funds should have been exempt, U.S. District Court Senior Judge Marvin H. Shoob wrote.

Tuesday’s decision only affects Gwinnett County because the lawsuit was brought against the clerk of court there. But many believe it could lead to changes in the state’s garnishment law.

“I think it’s probably going to affect the whole state of Georgia. Lawyers are going to be reluctant to file garnishments,” said William Randall, chief judge of civil and magistrate court in Bibb County. “It’s going to bring the whole process to a standstill.”

A garnishment occurs when a creditor claims that someone has not paid a debt. To collect the money, the creditor can file a lawsuit. If the debtor doesn’t reply within 30 days, an automatic judgment is issued, and wages or assets can be seized.

Tony Strickland filed a lawsuit after creditors seized his Social Security disability income and his workers’ compensation settlement. His money was frozen for nearly four months. During that time, he said, he couldn’t afford his heart medication and delayed a doctor’s visit for a blood clot in his hand until his arm turned black. He depended on his children to pay for groceries and medical expenses.

Strickland eventually got his money back, but in cases like his, “funds that may be needed to pay daily living expenses, including for food, shelter, and medical care, are frozen,” Shoob wrote.

“Defendant’s argument that debtors ought to be able to find out for themselves how to claim exemptions ignores the fact that the law does not require debtors to be notified that there even are exemptions. Debtors cannot be expected to find out how to claim what they do not even know exist,” Shoob wrote. “…It is not reasonable to expect an untutored layperson to be able to discover the procedures for making an exemption claim. …Even if the debtor were to examine the garnishment statute, he or she would find little, if any, guidance regarding how to assert such an exemption.”

The ruling enjoined Gwinnett County from issuing any garnishment summons.

Richard Alexander, Gwinnett’s clerk of courts, was named in the suit. Alexander said he will follow the ruling, but does not know what the rest of the state might do.

“Here, we’ve stopped,” he said. “We won’t be sending any more summons. We won’t disburse funds. We’re going to follow the court’s order.”

Gwinnett had 37 percent of the garnishments in the state in 2013, the last year statewide numbers are available. Its 2014 garnishment filings were up nearly 12 percent from the year before.

Carolyn Carter, an attorney for the National Consumer Law Center, said the ruling will likely require the state legislature to change Georgia’s garnishment law, resulting in fairer procedures for debtors.

Erik Heath, an attorney who represented Strickland, said the case “illustrates what’s wrong with the law.”

“People who have limited means, those benefits can very easily get swooped up into the garnishment process,” he said.

A spokesman for the state attorney general’s office, which argued in favor of the existing law, said officials are still reviewing the decision and had no comment.

Richard Howe, managing partner of the collection firm Howe & Associates, said he does not think the ruling will stick if the state or Gwinnett decides to appeal. Appellate courts have upheld the existing garnishment law in the past, he said.

Howe said he will continue to file garnishments in counties other than Gwinnett.

For the time being, at least, the halting in Gwinnett will have a positive impact for people whose money would have been at risk, said David Addleton, a consumer lawyer in Macon who has challenged the law before.

“The economy’s going to be helped,” he said. “Real people are going to have more money to spend on their medicines, groceries, utilities. …They will have their money and they will be able to use it.”

]]>https://www.gallerlaw.com/georgias-garnishment-law-unconstitutional/feed/0Attorney David Galler Predicts a Volatile End of the Year for Consumer Bankruptcyhttps://www.gallerlaw.com/attorney-david-galler-predicts-a-volatile-end-of-the-year-for-consumer-bankruptcy/
https://www.gallerlaw.com/attorney-david-galler-predicts-a-volatile-end-of-the-year-for-consumer-bankruptcy/#respondTue, 08 May 2018 13:16:27 +0000https://www.gallerlaw.com/?p=717BANKRUPTCY CHAPTER 13 CHAPTER 7 Attorney David Galler Predicts a Volatile End of the Year for Consumer Bankruptcy Atlanta, GA (September 2015) – David Galler, of Galler Law, LLC, discusses a significant overhaul in bankruptcy forms, claiming it will cause inevitable confusion for attorneys, creditors, judges and even the court itself. “Effective December 1, 2015, most […]

Attorney David Galler Predicts a Volatile End of the Year for Consumer Bankruptcy

Atlanta, GA (September 2015) – David Galler, of Galler Law, LLC, discusses a significant overhaul in bankruptcy forms, claiming it will cause inevitable confusion for attorneys, creditors, judges and even the court itself.

“Effective December 1, 2015, most official bankruptcy forms are scheduled to be replaced with substantially revised, reformatted and renumbered versions,” said Galler, who specializes in bankruptcy cases. “This massive change of bankruptcy forms will complete what has already been a volatile year for consumer bankruptcy.”

The new forms, according to United States Courts, are part of a forms modernization project that began in 2008 by the Advisory Committee on Bankruptcy Rules. Among other things, the new forms introduce different versions of case opening forms for individual debtors and non-individual debtors. They were designed to work with scheduled enhancements to the federal courts’ case opening and electronic case management system.

“I would advise anyone thinking about bankruptcy to file before the law change because history suggests that when the law changes it’s a mess in the courts with the confusion and adjusting to the new system,” said Galler. “This will be the biggest change in 10 years and it’s going to be a challenge because it’s going to be a lot more regulated than it was before.”

Galler added that the current laws in place went into effect in mid-2005 when there was a surge of people before that filing for bankruptcy under the system they were familiar with, and during previous times when the law has changed it was beneficial to file under the old system. Galler further advises to take advantage of the fact that bankruptcy attorneys have been working within the current system since 2005.

“When these laws change, it often will mean that part-time attorneys can’t handle the workload of becoming experts at the new system to best help their clients,” said Galler. “With me, a full-time attorney, I attend all my cases, type all the petitions myself and do all the work to make sure I have a thorough knowledge of your case.”

About David Galler, Galler Law, LLC

Galler Law, LLC has been serving Atlanta and all of Georgia for over 27 years in bankruptcy, workers’ compensation, student loan debt and mortgage modification cases. They work with each client to ensure that their individual needs are met, providing the kind of personal service not found at most larger firms. For more information, please call (770) 671-8830. Galler Law is located at 750 Hammond Drive, Building 6, Suite 100, Atlanta, GA 30328.

Georgian Attorney David Galler encourages homeowners to take advantage of the loan modification programs available, before they expire.

Past News Releases

SANDY SPRINGS, GA (PRWEB) AUGUST 31, 2015

The Federal Housing Finance Agency (FHFA) has extended the Home Affordable Modification Program (HAMP), which was originally set to expire in 2015, to at least the beginning of 2016. The reason for the extension deals with the popularity of the program among homeowners.

This includes HomeSafe Georgia, which has been funded with $339 million for Georgia homeowners in need. “HomeSafe Georgia is a federally-funded, state-operated mortgage assistance program that helps homeowners avoid foreclosure,” according to the HomeSafewebsite.

David Galler, of Galler Law, LLC, focuses on debt management and loan modification. He encourages those behind on a payment or soon-to-be behind on a payment, and are unemployed or underemployed homeowners eligible for the HomeSafe program, to apply as soon as possible.

According to the U.S. Department of Housing and Urban Development, a loan modification is a permanent change in one or more of the terms of a borrower’s loan that allows the loan to be reinstated, and results in a payment that the borrower can afford.

“Home modifications are a powerful tool to help struggling homeowners avoid foreclosure without filing for bankruptcy,“ said Galler. Although, some have their doubts about loan modification versus bankruptcy, Galler is well-versed on the benefits of each and as an experienced bankruptcy attorney, who has filed hundreds of confirmed bankruptcy plans, he can advise his clients on which plan is best suited for their needs.

Galler’s firm can help clients modify their loans so that missed payments would be due at the end of the loan term; reduce monthly payments and interest; as well as reduce principal loan balance. Through loan modifications, homeowners can avoid foreclosure.

“This is not a regulated industry, so anyone could say they can help you,” said Galler. “We have been doing debt work for over 30 years and our track record shows we have been practicing heavily for the last two years with an amazing success rate.” The program can reduce payments to 31 percent or lower of the homeowner’s pre-tax monthly gross income.

There also loan modification programs that can lower interest rates, convert an adjustable mortgage to a fixed rate and even reduce a principal balance, if the property value is significantly less that loan balance.

About David Galler, Galler Law, LLC
Galler Law, LLC has been serving Atlanta and all of Georgia for over 27 years in bankruptcy, workers’ compensation, student loan debt and mortgage modification cases. They work with each client to ensure that their individual needs are met. They provide the kind of personal service not found at most larger firms. For more information visit: http://gallerlaw.com. Galler Law offices located at 750 Hammond Drive Building 6 – Suite 100, Sandy Springs, GA 30328

Freddie Mac Sells $1.1 Billion of Seriously Delinquent Loans
SEPTEMBER 16, 2015 —
MCLEAN, VA — (Marketwired) — 09/16/15 — Freddie Mac (OTCQB: FMCC) today announced it sold via auction 5,208 deeply delinquent non-performing loans (NPLs) serviced by Ocwen Loan Servicing, LLC from its mortgage investment portfolio on September 11, 2015. The transaction is expected to settle in October, 2015, and servicing will be transferred post-settlement. The sale is part of Freddie Mac’s Standard Pool Offerings (SPO(SM)).
These loans have been delinquent for approximately three and a half years, on average. Given the deep delinquency status of the loans, the borrowers have likely been evaluated previously for or are already in various stages of loss mitigation, including modification or other alternatives to foreclosure, or are in foreclosure. Mortgages that were previously modified and subsequently became delinquent comprise approximately 33% of the aggregate pool balance. The aggregate pool is geographically diverse and has a loan-to-value of approximately 91.1, based on BPO (Broker Price Opinion).
The loans were offered as five separate pools of mortgage loans, and investors had the flexibility to bid on one or more pools, or bid on the aggregate of all five pools. Pools #1 and #2 are comprised of loans with CLTV between 50 and 110, and all other attributes are generally comparable except for pool size. Pools #3 and #4 are comprised of loans with CLTV greater than 110, and all other attributes are generally comparable except for pool size. The five pools, winning bidders and cover bid prices (second highest bids) are summarized below:
Freddie Mac, through its advisors, began marketing the transaction on August 13th, 2015 to potential bidders, including minority and women owned businesses (MWOBs), non-profits, neighborhood advocacy funds and private investors active in the NPL market.
Freddie Mac’s regulator and conservator, the Federal Housing Finance Agency (FHFA), announced enhanced requirements for NPL sales, which include:
Servicer must be approved by and in good standing with Freddie Mac, Fannie Mae, Ginnie Mae, or FHA.

All servicers must agree to service in accordance with applicable law.

Servicers must prioritize loan modifications over short sales or deeds in lieu of foreclosure, and foreclosure must be the last option; and for loans that transition to REO (Real Estate Owned), servicers must encourage sales to owner occupants and non-profits.

Servicers must comply with the requirements of the U.S. Department of the Treasury’s Making Home Affordable programs, including the Home Affordable Modification Program (HAMP), and evaluate eligible borrowers for such programs.

Servicers must evaluate all borrowers who are determined ineligible for HAMP (other than those with an imminent foreclosure sale date or vacant property) for a proprietary modification.

Servicers must honor completed modifications, and those in trial or applications in process at the time of sale, and continue to close in-process modifications unless they are able to offer terms more favorable to borrowers.

Subsequent servicers must agree to assume the responsibilities of the initial servicer.

Advisors to Freddie Mac on the transaction were Credit Suisse, Wells Fargo Securities and First Financial Network, a woman-owned business.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. Additional information is available at Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.